JP/Office property beings to sparkle

The office property sector in Jakarta is set for high growth as a number of new towers come on stream by the end of 2009, a property consultant says.

"Twenty-seven new office buildings, providing some one million square meters of space, are under construction this year, and are expected to be completed by 2009," Anton Sitorus, head of research for property consulting firm Jones Lang LaSalle, said Monday.

"I believe the office property industry has a bright future as interest rates are decreasing," Anton added, pointing also to likely increases in investment as Indonesia came to once again be seen as one of the growth centers in the Asia-Pacific region.

According to figures provided by the company, Jakarta had around five million square meters of office space as of June, with the occupancy rate standing at 85 percent.

"The office space supply in the central business district (CBD) stood at 3.3 million square meters while the remaining 1.7 million square meters is in other areas," said Jones's associate director for commercial affairs, Angela Wibawa.

Angela and Anton were speaking during a media briefing on the Sampoerna Strategic Square towers, located on Jl Sudirman, Central Jakarta, which Angela said were already 60 percent occupied.

The towers are owned by PT Buana Sakti, which bought them from Bank Danamon in 2005. The company has been renovating them since February last year by changing the interior design, expanding the underground parking area, building an atrium connecting the towers and developing an office park. (12)